Volkswagen Golf VII: Launch of a New Era Prof
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Volkswagen Golf VII: Launch of a new era Prof. Dr. Martin Winterkorn, Chairman of the Board of Management Hans Dieter Pötsch, Member of the Board of Management Volkswagen Aktiengesellschaft Sardinia, 8 October 2012 Disclaimer This presentation contains forward-looking statements and information on the business development of the Volkswagen Group. These statements may be spoken or written and can be recognized by terms such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “seeks”, “estimates”, “will” or words with similar meaning. These statements are based on assumptions relating to the development of the economies of individual countries, and in particular of the automotive industry, which we have made on the basis of the information available to us and which we consider to be realistic at the time of going to press. The estimates given involve a degree of risk, and the actual developments may differ from those forecast. Consequently, any unexpected fall in demand or economic stagnation in our key sales markets, such as in Western Europe (and especially Germany) or in the USA, Brazil or China, will have a corresponding impact on the development of our business. The same applies in the event of a significant shift in current exchange rates relative to the US dollar, sterling, yen, Brazilian real, Chinese rinminbi and Czech koruna. If any of these or other risks occur, or if the assumptions underlying any of these statements prove incorrect, the actual results may significantly differ from those expressed or implied by such statements. We do not update forward-looking statements retrospectively. Such statements are valid on the date of publication and can be superceded. This information does not constitute an offer to exchange or sell or an offer to exchange or buy any securities. 2 Volkswagen Golf VII: Launch of a new era Prof. Dr. Martin Winterkorn Chairman of the Board of Management, Volkswagen Aktiengesellschaft Sardinia, 8 October 2012 The new Golf 4 Strategy 2018: Sustainable growth and profitability Top customer satisfaction & quality Volkswagen Group Return on Top Vision: the world’s most profitable, sales before tax employer fascinating and sustainable automobile > 8% manufacturer Unit sales > 10 million vehicles 5 Volkswagen Group – built on three strong pillars1) Automotive Division Financial Services Division Commercial Vehicles, Passenger Cars Volkswagen Financial Services Power Engineering Europe / Asia-Pacific / North- and South America Financial Services USA / Canada / Spain / Argentina Scania Financial Services 2) 3) MAN Financial Services Porsche Holding Financial Services Remaining companies Porsche Financial Services 1) Organisational structure of Volkswagen Group as from 1 September 2012; reporting structure as from Q1 2013 report 3) Consolidated as from 19 July 2012 2) Fully consolidated as from 1 August 2012 6 Substantial growth opportunities1) Cars and Light Commercial Vehicles Trucks (>6t) World market growth 2011-2018 (million units) World market growth 2011-2018 (million units) +36% +55% 103.1 4.3 87.4 3.5 75.6 2.8 2011 2014 2018 2011 2014 2018 1) Source: IHS Global Insight (data status: September 2012), rounded 7 Volkswagen Group – Deliveries to customers by brands1) January to September 2012 vs. 2011 ´000 units January to September 2011 +10.6% January to September 2012 8,000 6,802 7,000 6,152 6,000 +10.5% 5,000 4,209 3,811 4,000 3,000 +12.8% 2,000 +7.9% -10.7% +4.9% 973 1,098 +24.4% 1,000 665 717 267 390 409 238 23 56 0 Volkswagen Volkswagen Audi ŠKODA SEAT Porsche Bentley VW Commercial Group Passenger Cars (since 08/2012) Vehicles 1) Preliminary figures incl. Scania (Jan – Jun) and MAN (Jan – Jun; since 9 Nov 2011); 9.7% excl. Scania and MAN. Porsche AG fully consolidated as from 1 August 2012 8 World car markets and Volkswagen Group deliveries to customers1) January to September 2012 vs. 2011 World: Car market: 7.9% VW Group: 9.7% North America Western Europe Central & Eastern Europe Car market VW Group Car marketVW Group Car market VW Group Cars + LCV 25.3% 23.1% 13.5% 9.4% -2.8% -7.6% South America Rest of World Asia Pacific Car marketVW Group Car market VW Group Car market VW Group 20.9% 17.9% 13.5% 7.6% 4.8% 7.3% 1) Preliminary figures incl. Porsche (since 1 August 2012); excl. Scania and MAN 9 Volkswagen Golf VII: Launch of a new era Hans Dieter Pötsch Member of the Board of Management, Volkswagen Aktiengesellschaft Sardinia, 8 October 2012 Golf VII – a cornerstone in our Strategy 2018 Sustainable growth combined with sustainable profitability Growth market focus Increased market penetration Potential upside Modular toolkit strategy Product portfolio extension 1 Emerging markets expansion Reduction in investment, North American expansion Balanced global footprint development and unit costs and market recovery Scale and efficiency effects Commercial vehicle strategy 6 Leading in 2 Increased production flexibility and market recovery customer satisfaction Reduced time to market Financial Services: strengthen and quality the automotive value chain Volkswagen Group profit Top employer before tax margin > 8% Capital discipline Volumes > 16% RoI target in > 10 million 2) automotive business Synergy potential units p.a. 20% RoE1) goal in Leveraging best practices 5 3 Financial Services across the Group Operating profit measures Around 6% automotive capex Purchasing, production, and Strong cost control in PPE/sales distribution benefits 4 Process/product optimization Regional scale effects 1) Normalized RoE based on 8% equity ratio 2) Including China Note: All stated Volkswagen Group figures represent financial targets for 2018, excluding Porsche and MAN 11 The Golf – a reliable contributor to Volkswagen‘s success More than 29 million Golf deliveries to customers since 1974 1974 Golf I 1983 Golf II 1991 Golf III 1997 Golf IV 2003 Golf V 2008 Golf VI 2012 Golf VII Deliveries to customers1) (´000 vehicles) (% of Group deliveries) 30% 800 600 20% 400 10% 200 0 0% 1) includes Golf Hatchback, Station Wagon, MPV, Cabrio 12 The new Golf sets the benchmark in terms of efficiency and sustainability 130 5.0 120 4.5 110 4.0 100 3.5 emission g/km 90 3.0 2 CO 80 2.5 Fuel consumption l/100km 70 2.0 CO2 emission g/km Fuel consumption l/100km 13 Strong position in Europe and substantial growth opportunities for the Golf in key sales markets Market shares of the Golf* in 2011 > 6 % 4-6 % 3-4 % 2-3 % 0-2 % * includes Golf Hatchback, Station Wagon, MPV, Cabrio 14 Introducing premium features in the volume segment 2012 Golf VII Multicollision brake Speed limiter Front transverse diff. lock Touch with proximity sensing Progressive steering Automatically folding mirror LED fog lights PreCrash Park Assist 2 2008 City Emergency Braking Fatigue detection Golf VI Traffic sign detection Park Pilot Navigation touchscreen Dynamic Light Assist Knee airbag Lane Assist Park Assist Front Assist Damper control DCC Adaptive Cruise Control 1974 Common rail TDI Electric parking brake Dyn. cornering light Driving profile selection Golf I Reversing camera Cylinder deactivation Automatic Stop/Start Deluxe climate window Battery regeneration Panoramic tilt/slide sunroof Front-wheel drive Hill hold assist Ergonomic seats Transverse engines LED rear lighting Run-flat tyres GTI KESSY Ambience lighting 15 More value for money… Driver assistance systems and vehicle dynamics available for all vehicles based on MQB PreCrash 360°Park Pilot Park Assist 2 Sign Assist Fatigue detection Adaptive Cruise Control Lane Assist City Emergency Breaking Multicollision brake 16 Leveraging economies of scale: One standard across the brands and segments Common technology but individual surface and controls to Modular Infotainment Toolkit safeguard brand differentiation Modular Infotainment Toolkit to be used across all segments, also in New Small Family class as well as Trucks and Buses A0 A B C D E High/Premium MSB Standard MLB MQB / Entry PQ 1) MQB: Modularer Querbaukasten / modular transversal toolkit; PQ: Plattform Quer / transversal platform; MLB: Modularer Längsbaukasten / modular longitudinal toolkit; MSB: Modularer Standardbaukasten / modular standard toolkit 17 Intuitive and high quality infotainment systems for everyone’s taste and budget High-quality display Multitouch: Gesture control in operating the touchscreen Cover flow for selecting media Display size up to 8“ Situative touchscreen (STS) Proximity sensors detect the user‘s finger or hand and then automatically switch from display mode to operating mode Detailed information display in display mode Safe and convenient user operation in operating mode Easy operation Well laid-out and intuitive user menus Capacitive touchscreen: Low touch pressure Large MIB display makes controls easy to operate and enables individual settings for all vehicle & driver assistance systems 18 Moving profitability to a higher sustainable level Increasing operating profit Higher avg. revenues per car Lower material costs per unit through better equipped vehicles Lower engineered hours per vehicle Operating profit Lower one-off expenditure Economies of scale RoI = Invested capital Disciplined management of investment capital Shorter development Less investments in tooling times per car through high standardisation Limited one-off expenditure RoI in the Automotive Division 17.7 Best in Target class >16 % 13.5 10.9 9.5 9 % 3.8 2.9 5.8 … 2005 2006 2007 2008 2009 2010 2011 2018 19 MQB Toolkit: Driving forward significant economies of scale in unit cost and investment MQB1) … Audi A3 Volkswagen SEAT ŠKODA Golf